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Can you summarize IACO 554.3104?
UNIFORM COMMERCIAL CODE > Negotiable instrument.
Short Summary
This legal document, part of the Iowa Code’s Uniform Commercial Code, defines and governs negotiable instruments. A negotiable instrument is an unconditional promise or order to pay a fixed amount of money, payable to bearer or to order, and either payable on demand or at a definite time. It does not contain any other undertakings or instructions beyond the payment of money, although it may include provisions for collateral, confession of judgment, or waiver of certain laws. The document also clarifies that an instrument can be a note or a draft, and provides definitions for terms such as check, cashier’s check, teller’s check, traveler’s check, and certificate of deposit. It further distinguishes between demand drafts and checks, and outlines the requirements for each. The document does not mention any specific penalties for non-compliance or violations.
Whom does it apply to?
Holders and issuers of negotiable instruments
What does it govern?
Negotiable instruments
What are exemptions?
An order that meets all the requirements of a negotiable instrument except being payable to bearer or to order is still considered a negotiable instrument if it falls within the definition of a check. A promise or order that contains a statement indicating it is not negotiable or not governed by this Article is not considered an instrument.
What are the Penalties?
No penalties are mentioned in this document.
Jurisdiction
Iowa